WV BUSINESS LAW PRACTICE
EXAM FOR CONTRACTORS
Which of the following statements is TRUE regarding a Limited
Liability Company (LLC)?
a. The owners are responsible for self-employment tax on all business
proceeds earned form the business.
b. The company is limited to maximum of 100 members
(shareholders).
c. All company members (shareholders) are required to be U.S.
Citizens.
d. All members are completely liable for debts and actions of the
company. - ANSWERS-a. The owners are responsible for self-
employment tax on all business proceeds earned form the business.
Where must liens be field in order to be properly recorded?
a. Federal court
b. State court
c. County court
d. City court - ANSWERS-c. County court
Which of the following best describes the tern "double-taxation"?
a. The company pays taxes on its income, then distributes dividends
to shareholders which are taxed at the personal level.
, b. The business owner pays federal taxes on a salary, then pays taxes
on the remaining income for the business.
c. A business pays Federal tax based on business income, and pays
State tax based on business income.
d. A corporation pays sales tax on property sold to owners, and pays
income tax on business operations. - ANSWERS-a. The company
pays taxes on its income, then distributes dividends to shareholders
which are taxed at the personal level.
].......B------E-------------- ]
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A.--..D......G..........Closeout
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------C-----F---------------
Which of the following is the critical path leading to closeout?
a. A,B,E
b. A,D,G
c. A,C,F
d. A,B,C,D,E,F,g - ANSWERS-a. A,B,E
].......B------E-------------- ]
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A.--..D......G..........Closeout
]]
EXAM FOR CONTRACTORS
Which of the following statements is TRUE regarding a Limited
Liability Company (LLC)?
a. The owners are responsible for self-employment tax on all business
proceeds earned form the business.
b. The company is limited to maximum of 100 members
(shareholders).
c. All company members (shareholders) are required to be U.S.
Citizens.
d. All members are completely liable for debts and actions of the
company. - ANSWERS-a. The owners are responsible for self-
employment tax on all business proceeds earned form the business.
Where must liens be field in order to be properly recorded?
a. Federal court
b. State court
c. County court
d. City court - ANSWERS-c. County court
Which of the following best describes the tern "double-taxation"?
a. The company pays taxes on its income, then distributes dividends
to shareholders which are taxed at the personal level.
, b. The business owner pays federal taxes on a salary, then pays taxes
on the remaining income for the business.
c. A business pays Federal tax based on business income, and pays
State tax based on business income.
d. A corporation pays sales tax on property sold to owners, and pays
income tax on business operations. - ANSWERS-a. The company
pays taxes on its income, then distributes dividends to shareholders
which are taxed at the personal level.
].......B------E-------------- ]
])
A.--..D......G..........Closeout
]]
------C-----F---------------
Which of the following is the critical path leading to closeout?
a. A,B,E
b. A,D,G
c. A,C,F
d. A,B,C,D,E,F,g - ANSWERS-a. A,B,E
].......B------E-------------- ]
])
A.--..D......G..........Closeout
]]
